Questions & Answers
The responsibility of paying EOSB when a partner refuses to bear it
Good Day,
My partner and I have been 50/50 shareholders in a transport company for the last 35 years. Now we reached a stage where we can't stand each other.
I offered my partner that I will run the company for 2 years and agreed on remuneration to him with a fixed amount to be paid irrespective of profit or loss for 2 years i.e. 2018 and 2019. We both agreed.
Now we are closing the company, or else, one of us buys the other share and we need to finalize on the payout.
I informed my partner to be equally responsible for the employees resigned in 2018 & 2019 regarding the end of service benefits which he has refused saying that he was not in the company for these 2 years.
Those employees have been working with us before we had this agreement.
Please advise if he is responsible for their payments equally or not.
Hello,
What about the agreement between you both?
We can check the responsibilities for both of you, please contact us via phone or email.
As long as you agree that he has a fixed amount regardless of profit or loss, then his position becomes like an employee and thus the financial company’s burdens are upon you.
If there is no written agreement, the company will bear the financial burdens.
Hi,
Although there is no formal agreement, we still may be able to secure your rights under relevant UAE Laws.
Kindly provide a number on which we can contact you directly. Alternatively, you can reach us via email.
You can contact me directly via phone.
